Hackensack NJ (November 15, 2023) –  Rawle & Henderson LLP attorneys Adam Kominsky and Floyd Cottrell obtained the dismissal of Plaintiff’s complaint for “failure to state a cause of action” in Hudson County, New Jersey Superior Court, on behalf of their client, a plumbing services contractor.

This action arose out of a water damage loss that occurred during a construction project. The Plaintiff, the owner of the project, alleged the defendants were negligent in causing water to flood the property, leading to unreasonable delays and extra carrying costs. As a result, the owner sought to recover its consequential damages of more than $900,000 for lost rent and additional loan expenses caused by the construction delays.

The Court granted the motion to dismiss, before the close of discovery, on the basis of the “economic loss rule.” The economic loss rule bars tort remedies for purely economic damages stemming from a defendant’s alleged negligent conduct in performance of a contractual obligation.

In finding that the exceptions to the economic loss rule did not apply, the Court held that the plumbing contractors do not owe an independent tort duty to the aggrieved owners, and any alleged damages arise from contract and not negligence principles.

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